HANGZHOU, China, Feb. 24, 2022 /PRNewswire/ — NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase” or the “Firm”), certainly one of China’s main web and on-line recreation companies suppliers, in the present day introduced its unaudited monetary outcomes for the fourth quarter and financial yr ended December 31, 2021.
Fourth Quarter 2021 Monetary Highlights
- Internet revenues had been RMB24.Four billion (US$3.Eight billion), a rise of 23.3% in contrast with the fourth quarter of 2020.
- On-line recreation companies web revenues had been RMB17.Four billion (US$2.7 billion), a rise of 29.8% in contrast with the fourth quarter of 2020.
- Youdao web revenues had been RMB1.Three billion (US$209.Three million), a rise of 20.5% in contrast with the fourth quarter of 2020.
- Cloud Music web revenues had been RMB1.9 billion (US$296.5 million), a rise of 23.9% in contrast with the fourth quarter of 2020. [1]
- Progressive companies and others web revenues had been RMB3.Eight billion (US$588.9 million), a rise of 0.6% in contrast with the fourth quarter of 2020.
- Gross revenue was RMB12.9 billion (US$2.Zero billion), a rise of 30.1% in contrast with the fourth quarter of 2020.
- Whole working bills had been RMB8.Three billion (US$1.Three billion), a rise of 20.2% in contrast with the fourth quarter of 2020.
- Internet earnings attributable to the Firm’s shareholders was RMB5.7 billion (US$893.5 million). Non-GAAP web earnings attributable to the Firm’s shareholders was RMB6.6 billion (US$1.Zero billion). [2]
- Primary web earnings per share was US$0.27 (US$1.36 per ADS). Non-GAAP fundamental web earnings per share was US$0.32 (US$1.58 per ADS). [2]
Fourth Quarter 2021 and Early 2022 Operational Highlights
- New hit titles amassed fast participant recognition together with:
- Naraka: Bladepoint, which frequently hit record-high customers and was named a “Prime Vendor” on Steam’s Better of 2021 video games record. A brand new Bruce Lee-themed crossover addition additionally invigorated the worldwide participant group.
- Harry Potter: Magic Woke up, with fascinating content material updates that drove the sport rating to a number one place on China’s iOS obtain chart and grossing chart a number of instances.
- The Showbiz: Dream Chaser, which ranked No. 1 on China’s iOS obtain chart after its December 2021 debut.
- Prolonged the attain of main franchise titles together with each the Fantasy Westward Journey and Westward Journey On-line sequence.
- Continued the development of upcoming video games pipeline similar to console and cellular variations of Naraka: Bladepoint, Diablo® Immortal™ and Ghost World Chronicle, in addition to the roll-out of Harry Potter: Magic Woke up and Lifeless by Daylight Cellular -NetEase in worldwide markets.
- Achieved persevering with working money influx from Youdao for the fourth quarter of 2021, whereas advancing its studying companies and sensible gadgets.
- Efficiently accomplished the preliminary public providing and itemizing of Cloud Village Inc. (HKEX: 9899, “Cloud Village”) on The Inventory Trade of Hong Kong Restricted (the “Hong Kong Inventory Trade”) in December 2021. Elevated Cloud Music’s MAUs of on-line music companies round 1% from 2020 to 2021. Continued to nurture impartial artists, serving greater than 400,000 impartial musicians by the top of 2021 by means of Cloud Music platforms.
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[1]Â Efficient within the fourth quarter of 2021, the Firm modified its phase disclosure to individually report the outcomes of Cloud Music. In consequence, the Firm now studies segments as on-line recreation companies, Youdao, Cloud Music and modern companies and others. See “Change of phase reporting” on this announcement. |
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[2] As used on this announcement, non-GAAP web earnings attributable to the Firm’s shareholders and non-GAAP fundamental and diluted web earnings per share and per ADS are outlined to exclude share-based compensation bills. See “Unaudited Reconciliation of GAAP and Non-GAAP Outcomes” in this announcement. |
“2021 was a fruitful yr with thrilling new titles and regular improvement that propelled progress throughout our enterprise. We closed the yr with complete web revenues of RMB24.Four billion within the fourth quarter, up 23.3% year-over-year,” stated Mr. William Ding, CEO and Director of NetEase. “Whereas our flagship titles stay sturdy, we additionally launched quite a few extremely profitable video games, together with Naraka: Bladepoint and Harry Potter: Magic Woke up. These new titles additional strengthen our portfolio and reveal our capacity to develop world-class IP. For 2022, we’re very excited to introduce extra new video games to broader demographics, paving the best way for strong progress.Â
“Having accomplished Cloud Village’s IPO, we are going to proceed to enhance our music platforms’ infrastructure and choices to complement our customers’ expertise. In 2022 we plan to additional domesticate our core pursuits and improve content material inside every of our verticals,” Mr. Ding concluded.
Fourth Quarter 2021 Monetary Outcomes
Internet Revenues
Internet revenues for the fourth quarter of 2021 had been RMB24,373.6 million (US$3,824.7 million), in contrast with RMB22,190.7 million and RMB19,761.7 million for the previous quarter and the fourth quarter of 2020, respectively.
Internet revenues from on-line recreation companies had been RMB17,397.5 million (US$2,730.1 million) for the fourth quarter of 2021, in contrast with RMB15,899.1 million and RMB13,400.2 million for the previous quarter and the fourth quarter of 2020, respectively. Internet revenues from cellular video games accounted for roughly 68.3% of web revenues from on-line recreation companies for the fourth quarter of 2021, in contrast with 69.2% and 72.4% for the previous quarter and the fourth quarter of 2020, respectively.
Internet revenues from Youdao had been RMB1,333.Eight million (US$209.3Â million) for the fourth quarter of 2021, in contrast with RMB1,387.3Â million and RMB1,106.Eight million for the previous quarter and the fourth quarter of 2020, respectively.
Internet revenues from Cloud Music had been RMB1,889.Three million (US$296.5Â million) for the fourth quarter of 2021, in contrast with RMB1,924.7Â million and RMB1,524.5 million for the previous quarter and the fourth quarter of 2020, respectively.
Internet revenues from modern companies and others had been RMB3,753.Zero million (US$588.9Â million) for the fourth quarter of 2021, in contrast with RMB2,979.7Â million and RMB3,730.3Â million for the previous quarter and the fourth quarter of 2020, respectively. Â Â Â
Gross Revenue
Gross revenue for the fourth quarter of 2021 was RMB12,917.8Â million (US$2,027.1Â million), in contrast with RMB11,810.8Â million and RMB9,927.8Â million for the previous quarter and the fourth quarter of 2020, respectively.
The quarter-over-quarter and year-over-year will increase in on-line recreation companies gross revenue had been primarily as a consequence of elevated web revenues from new video games similar to Naraka: Bladepoint and Harry Potter: Magic Woke up.
The quarter-over-quarter lower in Youdao gross revenue was primarily as a consequence of decreased web revenues from its after-school tutoring companies for educational topics underneath China’s obligatory training system (the “Tutorial AST Enterprise”) which had been included in its studying companies. The year-over-year improve was primarily as a consequence of enterprise improvement from its studying companies.
The quarter-over-quarter improve in Cloud Music gross revenue was primarily as a consequence of improved price management. The year-over-year improve was primarily as a result of elevated web revenues from its social leisure companies and others in addition to improved price management.
The quarter-over-quarter improve in modern companies and others gross revenue was primarily as a consequence of elevated gross revenue from promoting companies and Yanxuan.
Gross Revenue Margin
Gross revenue margin for on-line recreation companies for the fourth quarter of 2021 was 64.1%, in contrast with 64.5% and 63.1% for the previous quarter and the fourth quarter of 2020, respectively. Gross revenue margin for on-line recreation companies typically fluctuates inside a slim band primarily based on the income mixture of cellular and PC video games, in addition to NetEase’s self-developed and licensed video games.
Gross revenue margin for Youdao for the fourth quarter of 2021 was 50.7%, in contrast with 56.6% and 47.5% for the previous quarter and the fourth quarter of 2020, respectively. The quarter-over-quarter and year-over-year fluctuations had been primarily as a result of improvement and adjustments of its Tutorial AST Enterprise.
Gross revenue margin for Cloud Music for the fourth quarter of 2021 was 4.1%, in contrast with 2.2% and detrimental gross revenue margin of seven.1% for the previous quarter and the fourth quarter of 2020, respectively. The quarter-over-quarter and year-over-year enhancements had been primarily as a result of components enumerated above. Â
Gross revenue margin for modern companies and others for the fourth quarter of 2021 was 26.8%, in contrast with 24.2% and 28.2% for the previous quarter and the fourth quarter of 2020, respectively. The quarter-over-quarter improve was primarily as a consequence of elevated gross revenue margin from promoting companies. Â Â
Working Bills
Whole working bills for the fourth quarter of 2021 had been RMB8,309.6 million (US$1,304.Zero million), in contrast with RMB8,035.6 million and RMB6,915.Eight million for the previous quarter and the fourth quarter of 2020, respectively. The quarter-over-quarter and year-over-year will increase had been primarily as a consequence of elevated advertising and marketing expenditures associated to on-line recreation companies, increased staff-related prices and analysis and improvement investments, partially offset by decreased advertising and marketing expenditures associated to Youdao.Â
Different Revenue/ (Bills)
Different earnings/ (bills) consisted of funding (loss)/ earnings, curiosity earnings, alternate (losses)/ beneficial properties and others. The quarter-over-quarter improve in web different earnings was primarily as a consequence of increased funding earnings arising from honest worth adjustments of fairness investments, partially offset by increased unrealized alternate losses arising from the Firm’s U.S. dollar-denominated financial institution deposits and loans balances because the alternate fee of the U.S. greenback towards the RMB fluctuated over the intervals. The year-over-year improve in web different earnings was primarily as a consequence of increased funding earnings arising from honest worth adjustments of fairness investments and decreased unrealized alternate losses.
Revenue TaxesÂ
The Firm recorded a web earnings tax cost of RMB934.Zero million (US$146.6 million) for the fourth quarter of 2021, in contrast with RMB807.6 million and RMB552.7 million for the previous quarter and the fourth quarter of 2020, respectively. The efficient tax fee for the fourth quarter of 2021 was 14.2%, in contrast with 19.6% and 37.2% for the previous quarter and the fourth quarter of 2020, respectively. The efficient tax fee represents sure estimates by the Firm relating to the tax obligations and advantages relevant to it in every quarter.
Internet Revenue and Non-GAAP Internet RevenueÂ
Internet earnings attributable to the Firm’s shareholders for the fourth quarter of 2021 totaled RMB5,694.2 million (US$893.5 million), in contrast with RMB3,181.Eight million and RMB975.7 million for the previous quarter and the fourth quarter of 2020, respectively. Â Â
Non-GAAP web earnings attributable to the Firm’s shareholders for the fourth quarter of 2021 totaled RMB6,595.6 million (US$1,035.Zero million), in contrast with RMB3,857.Eight million and RMB1,597.9 million for the previous quarter and the fourth quarter of 2020, respectively.Â
NetEase reported fundamental web earnings of US$0.27 per share (US$1.36 per ADS) for the fourth quarter of 2021, in contrast with US$0.15 per share (US$0.75 per ADS) and US$0.05 (US$0.23 per ADS) for the previous quarter and the fourth quarter of 2020, respectively.
NetEase reported non-GAAP fundamental web earnings of US$0.32 per share (US$1.58 per ADS) for the fourth quarter of 2021, in contrast with US$0.18 per share (US$0.91 per ADS) and US$0.08 per share (US$0.37 per ADS) for the previous quarter and the fourth quarter of 2020, respectively.
Fiscal Yr 2021Â Monetary Outcomes
Internet Revenues
Internet revenues for fiscal yr 2021 had been RMB87,606.Zero million (US$13,747.3Â million), in contrast with RMB73,667.1Â million for fiscal yr 2020.
Internet revenues from on-line recreation companies had been RMB62,806.5 million (US$9,855.7Â million) for fiscal yr 2021, in contrast with RMB54,608.7 million for fiscal yr 2020. Internet revenues from cellular video games accounted for roughly 70.4% of web revenues from on-line recreation companies for fiscal yr 2021, in contrast with 71.9% for fiscal yr 2020.
Internet revenues from Youdao had been RMB5,354.Four million (US$840.2 million) for fiscal yr 2021, in contrast with RMB3,167.5 million for fiscal yr 2020.
Internet revenues from Cloud Music had been RMB6,997.6 million (US$1,098.1 million) for fiscal yr 2021, in contrast with RMB4,895.7 million for fiscal yr 2020.
Internet revenues from modern companies and others had been RMB12,447.6 million (US$1,953.3 million) for fiscal yr 2021, in contrast with RMB10,995.2 million for fiscal yr 2020.Â
Gross Revenue
Gross revenue for fiscal yr 2021 was RMB46,970.8Â million (US$7,370.7Â million), in contrast with RMB38,983.4Â million for fiscal yr 2020.
The year-over-year improve in on-line recreation companies gross revenue was primarily as a consequence of elevated web revenues ensuing from the launch of recent video games throughout the yr similar to Revelation cellular recreation, Naraka: Bladepoint and Harry Potter: Magic Woke up, in addition to from sure present video games such because the Fantasy Westward Journey sequence and Sky. Â Â
The year-over-year improve in Youdao gross revenue was primarily attributable to elevated gross revenue from its studying companies. Â Â
The year-over-year improve in Cloud Music gross revenue was primarily attributable to elevated web revenues in addition to improved price management.
The slight year-over-year lower in modern companies and others gross revenue was primarily as a consequence of decreased gross revenue from promoting enterprise.
Working Bills
Whole working bills for fiscal yr 2021 had been RMB30,553.7 million (US$4,794.5Â million), in contrast with RMB24,445.0Â million for fiscal yr 2020. The year-over-year improve was primarily as a consequence of elevated advertising and marketing expenditures particularly associated to on-line recreation companies, in addition to increased analysis and improvement investments and staff-related prices.
Different Revenue/ (Bills)
Different earnings/ (bills) consisted of funding earnings, curiosity earnings, alternate losses and others. The year-over-year improve in web different earnings was primarily as a consequence of a discount in unrealized alternate losses recorded in addition to increased funding earnings arising from honest worth adjustments of fairness investments.
Revenue Taxes
The Firm recorded a web earnings tax cost of RMB4,128.Three million (US$647.Eight million) for fiscal yr 2021, in contrast with RMB3,041.8 million for fiscal yr 2020. The efficient tax fee was 19.6% for fiscal yr 2021, in contrast with 19.8% for fiscal yr 2020. The marginally decrease efficient tax fee for fiscal yr 2021 was primarily as a consequence of decreased unrealized alternate losses.
Internet Revenue and Non-GAAP Internet Revenue
Internet earnings attributable to the Firm’s shareholders for fiscal yr 2021 totaled RMB16,856.Eight million (US$2,645.2 million), in contrast with RMB12,062.Eight million for fiscal yr 2020.
Non-GAAP web earnings attributable to the Firm’s shareholders for fiscal yr 2021 totaled RMB19,761.9 million (US$3,101.1 million), in contrast with RMB14,706.0 million for fiscal yr 2020.
NetEase reported fundamental web earnings of US$0.80 per share (US$3.98 per ADS) for fiscal yr 2021, in contrast with US$0.57 per share (US$2.86 per ADS) for fiscal yr 2020.
NetEase reported non-GAAP fundamental web earnings of US$0.93 per share (US$4.66 per ADS) for fiscal yr 2021, in contrast with US$0.70 per share (US$3.49 per ADS) for fiscal yr 2020.Â
Quarterly Dividend
The board of administrators has permitted a dividend of US$0.0810 per share (US$0.4050 per ADS) for the fourth quarter of 2021, to holders of strange shares and holders of ADSs as of the shut of enterprise on March 11, 2022, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. {dollars}. For holders of strange shares, with a purpose to qualify for the dividend, all legitimate paperwork for the switch of shares accompanied by the related share certificates have to be lodged for registration with the Firm’s Hong Kong department share registrar, Computershare Hong Kong Investor Providers Restricted, at Outlets 1712-1716, 17th Ground, Hopewell Centre, 183 Queen’s Street East, Wanchai, Hong Kong no later than 4:30 p.m. on March 11, 2022 (Beijing/ Hong Kong Time). The cost date is anticipated to be on March 22, 2022 for holders of strange shares and on or round March 25, 2022 for holders of ADSs.
NetEase paid a dividend of US$0.0450 per share (US$0.2250 per ADS) for the third quarter of 2021Â in December 2021.
At present, the Firm’s coverage is to set quarterly dividends at an quantity equal to roughly 20%-30% of the Firm’s anticipated web earnings after tax in every fiscal quarter. Future declarations of dividends and the institution of future file and cost dates are topic to the ultimate willpower of NetEase’s board of administrators and might be primarily based upon the Firm’s operations and earnings, money stream, monetary situation and different related components.
Different Data
As of December 31, 2021, the Firm’s complete money and money equivalents, present and non-current time deposits and short-term investments stability totaled RMB103.4Â billion (US$16.2Â billion), in contrast with RMB100.1Â billion as of December 31, 2020. Money stream generated from working actions was RMB24.9 billion (US$3.9Â billion) for fiscal yr 2021, in comparison with RMB24.9 billion for fiscal yr 2020.
Replace on Youdao’s Disposal of Tutorial After-Faculty Tutoring Enterprise
Youdao has ceased providing after-school tutoring companies for educational topics underneath China’s obligatory training system and accomplished the disposal of this enterprise.
Change in Section Reporting
Efficient within the fourth quarter of 2021, the Firm modified its phase disclosure to individually report the outcomes of its Cloud Music enterprise, generated from its majority-controlled subsidiary Cloud Village which accomplished its preliminary public providing and itemizing on the Hong Kong Inventory Trade in December 2021. In consequence, the Firm now studies segments as on-line recreation companies, Youdao, Cloud Music and modern companies and others. This modification in phase reporting aligns with the style, during which the Firm’s chief working resolution maker (“CODM”) at present receives and makes use of monetary info to allocate sources and consider the efficiency of reporting segments. The Firm retrospectively revised prior interval phase info to adapt to present intervals presentation. Â
Share Repurchase / Buy Program
On February 25, 2021, the Firm introduced that its board of administrators had permitted a share repurchase program of as much as US$2.Zero billion of the Firm’s excellent ADSs and strange shares in open market transactions for a interval to not exceed 24 months starting on March 2, 2021. On August 31, 2021, the Firm introduced that its board of administrators had permitted an modification to such program to extend the overall approved repurchase quantity to US$3.Zero billion. As of December 31, 2021, roughly 18.5 million ADSs had been repurchased underneath this program for a complete price of US$1.8 billion.
On August 31, 2021, the Firm introduced that its board of administrators had permitted a share buy program of as much as US$50.Zero million of Youdao’s excellent ADSs for a interval to not exceed 36 months starting on September 2, 2021. Below the phrases of this program, NetEase might buy Youdao’s ADSs in open-market transactions on the New York Inventory Trade. As of December 31, 2021, roughly 0.6 million ADSs had been bought underneath this program for a complete price of US$8.2 million.
The extent to which NetEase repurchases its ADSs and its strange shares or purchases Youdao’s ADSs will rely on quite a lot of components, together with market circumstances. These applications could also be suspended or discontinued at any time.
** The USA greenback (US$) quantities disclosed on this announcement are introduced solely for the comfort of the reader. The chances acknowledged are calculated primarily based on RMB.Â
Convention Name
NetEase’s administration workforce will host a teleconference name with simultaneous webcast at 7:00 a.m. New York Time on Thursday, February 24, 2022 (Beijing/Hong Kong Time: 8:00 p.m., Thursday, February 24, 2022). NetEase’s administration might be on the decision to debate the quarterly outcomes and reply questions.
events might take part within the convention name by dialing 1-646-828-8073 and offering convention ID: 6712767, 15 minutes previous to the initiation of the decision. A replay of the decision might be obtainable by dialing 1-719-457-0820 and coming into passcode 6712767#. The replay might be obtainable by means of March 9, 2022.  Â
This name might be webcast stay and the replay might be obtainable for 12 months. Each might be obtainable on NetEase’s Investor Relations web site at http://ir.netease.com/.
About NetEase, Inc.
As a number one web know-how firm primarily based in China, NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase”) gives premium on-line companies centered round modern and numerous content material, group, communication and commerce. NetEase develops and operates a few of China’s hottest cellular and PC video games. In more moderen years, NetEase has expanded into worldwide markets together with Japan and North America. Along with its self-developed recreation content material, NetEase companions with different main recreation builders, similar to Blizzard Leisure and Mojang AB (a Microsoft subsidiary), to function globally famend video games in China. NetEase’s different modern service choices embody the majority-controlled subsidiaries Youdao (NYSE: DAO), China’s main clever studying firm, and Cloud Village (HKEX: 9899), also referred to as NetEase Cloud Music, China’s main on-line music content material group, in addition to Yanxuan, NetEase’s non-public label e-commerce platform. For extra info, please go to: http://ir.netease.com/. Â
Ahead Wanting Statements
This announcement incorporates statements of a forward-looking nature. These statements are made underneath the “secure harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. You possibly can establish these forward-looking statements by terminology similar to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and related statements. As well as, statements that aren’t historic information, together with statements about NetEase’s methods and enterprise plans, its expectations relating to the expansion of its enterprise and its income and the quotations from administration on this announcement are or comprise forward-looking statements. NetEase might also make forward-looking statements in its periodic studies to the U.S. Securities and Trade Fee (the “SEC”), in bulletins made on the web site of The Inventory Trade of Hong Kong Restricted (the “Hong Kong Inventory Trade”), in press releases and different written supplies and in oral statements made by its officers, administrators or staff to 3rd events. The accuracy of those statements could also be impacted by quite a few enterprise dangers and uncertainties that would trigger precise outcomes to vary materially from these projected or anticipated, together with dangers associated to: the chance that the net recreation market won’t proceed to develop or that NetEase will be unable to take care of its place in that market in China or globally; the chance that COVID-19 or different well being dangers in China or globally may adversely have an effect on the Firm’s operations or monetary outcomes; dangers related to NetEase’s enterprise and working methods and its capacity to implement such methods; NetEase’s capacity to develop and handle its operations and enterprise; competitors for, amongst different issues, capital, know-how and expert personnel; potential adjustments in authorities regulation that would adversely have an effect on the business and geographical markets during which NetEase operates, together with, amongst others, initiatives to reinforce supervision of corporations listed on an abroad inventory alternate and tighten scrutiny over knowledge privateness and knowledge safety, in addition to the chance that NetEase’s ADSs might be barred from buying and selling in the USA because of the Holding Overseas Firms Accountable Act and the foundations promulgated thereunder; the chance that NetEase might not be capable to constantly develop new and inventive on-line companies or that NetEase will be unable to set, or observe in a well timed method, traits available in the market; competitors in NetEase’s present and potential markets; and the chance that fluctuations within the worth of the Renminbi with respect to different currencies may adversely have an effect on NetEase’s enterprise and monetary outcomes. Additional info relating to these and different dangers is included in NetEase’s filings with the SEC and bulletins on the web site of the Hong Kong Inventory Trade. NetEase doesn’t undertake any obligation to replace this forward-looking info, besides as required underneath the relevant legislation.Â
Non-GAAP Monetary Measures
NetEase considers and makes use of non-GAAP monetary measures, similar to non-GAAP web earnings attributable to the Firm’s shareholders and non-GAAP fundamental and diluted web earnings per share and per ADS, as supplemental metrics in reviewing and assessing its working efficiency and formulating its marketing strategy. The presentation of non-GAAP monetary measures shouldn’t be meant to be thought of in isolation or as an alternative choice to the monetary info ready and introduced in accordance with accounting ideas typically accepted in the USA of America (“U.S. GAAP”).
NetEase defines non-GAAP web earnings attributable to the Firm’s shareholders as web earnings attributable to the Firm’s shareholders excluding share-based compensation bills. Non-GAAP web earnings attributable to the Firm’s shareholders permits NetEase’s administration to evaluate its working outcomes with out contemplating the impression of share-based compensation bills. NetEase believes that these non-GAAP monetary measures present helpful info to buyers in understanding and evaluating the Firm’s present working efficiency and prospects in the identical method as administration does, in the event that they so select. NetEase additionally believes that using this non-GAAP monetary measure facilitates buyers’ evaluation of its working efficiency.
Non-GAAP monetary measures usually are not outlined underneath U.S. GAAP and usually are not introduced in accordance with U.S. GAAP. Non-GAAP monetary measures have limitations as analytical instruments. One of many key limitations of utilizing non-GAAP web earnings attributable to the Firm’s shareholders is that it doesn’t replicate all gadgets of earnings / expense that have an effect on our operations. Share-based compensation bills have been and will proceed to be incurred in NetEase’s enterprise and usually are not mirrored within the presentation of non-GAAP web earnings attributable to the Firm’s shareholders. As well as, the non-GAAP monetary measures NetEase makes use of might differ from the non-GAAP measures utilized by different corporations, together with peer corporations, and due to this fact their comparability could also be restricted.
NetEase compensates for these limitations by reconciling non-GAAP web earnings attributable to the Firm’s shareholders to the closest U.S. GAAP efficiency measure, all of which needs to be thought of when evaluating the Firm’s efficiency. See “Unaudited Reconciliation of GAAP and Non-GAAP Outcomes” on the finish of this announcement. NetEase encourages you to evaluate its monetary info in its entirety and never depend on a single monetary measure.Â
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NETEASE, INC. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in hundreds) |
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 December 31,  |
 December 31,  |
 December 31,  |
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2020 |
2021 |
2021 |
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 RMB  |
 RMB  |
 USD (Word 1) |
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Property |
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Present property: |
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|
  Money and money equivalents |
9,117,219 |
14,498,157 |
2,275,077 |
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|
  Time deposits |
71,079,327 |
70,754,846 |
11,102,979 |
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|
  Restricted money |
3,051,386 |
2,876,628 |
451,406 |
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|
  Accounts receivable, web |
4,576,445 |
5,507,988 |
864,324 |
||||||||||||||||||
|
  Inventories, web |
591,508 |
964,733 |
151,388 |
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|
  Prepayments and different present property, web |
6,076,543 |
6,235,857 |
978,541 |
||||||||||||||||||
|
  Brief-term investments |
13,273,026 |
12,281,548 |
1,927,243 |
||||||||||||||||||
|
  Property held on the market |
65,589 |
497 |
78 |
||||||||||||||||||
|
Whole present property |
107,831,043 |
113,120,254 |
17,751,036 |
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Non-current property: |
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|
  Property, tools and software program, web |
4,549,943 |
5,433,858 |
852,691 |
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|
  Land use proper, web |
4,178,257 |
4,108,090 |
644,649 |
||||||||||||||||||
|
  Deferred tax property |
1,086,759 |
1,297,954 |
203,677 |
||||||||||||||||||
|
  Time deposits |
6,630,000 |
5,823,840 |
913,888 |
||||||||||||||||||
|
  Restricted money |
– |
1,330 |
209 |
||||||||||||||||||
|
  Different long-term property, web |
17,593,117 |
23,857,510 |
3,743,763 |
||||||||||||||||||
|
  Property held on the market |
5,463 |
1,088 |
171 |
||||||||||||||||||
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Whole non-current property |
34,043,539 |
40,523,670 |
6,359,048 |
||||||||||||||||||
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Whole property |
141,874,582 |
153,643,924 |
24,110,084 |
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Liabilities, Redeemable Noncontrolling Pursuits |
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Present liabilities: |
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  Accounts payable |
1,134,413 |
985,059 |
154,577 |
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  Wage and welfare payables |
3,538,732 |
4,133,254 |
648,598 |
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  Taxes payable |
4,282,835 |
4,537,050 |
711,962 |
||||||||||||||||||
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  Brief-term loans |
19,504,696 |
19,352,313 |
3,036,800 |
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  Deferred income |
10,398,872 |
12,132,743 |
1,903,892 |
||||||||||||||||||
|
  Accrued liabilities and different payables |
7,337,672 |
9,360,907 |
1,468,931 |
||||||||||||||||||
|
  Liabilites held on the market |
546,271 |
– |
– |
||||||||||||||||||
|
Whole present liabilities |
46,743,491 |
50,501,326 |
7,924,760 |
||||||||||||||||||
|
Non-current liabilities: |
|||||||||||||||||||||
|
  Deferred tax liabilities |
713,439 |
1,345,874 |
211,197 |
||||||||||||||||||
|
  Lengthy-term mortgage |
– |
1,275,140 |
200,097 |
||||||||||||||||||
|
  Different long-term liabilities |
623,728 |
1,097,708 |
172,254 |
||||||||||||||||||
|
Whole non-current liabilities |
1,337,167 |
3,718,722 |
583,548 |
||||||||||||||||||
|
Whole liabilities |
48,080,658 |
54,220,048 |
8,508,308 |
||||||||||||||||||
|
Redeemable noncontrolling pursuits |
10,796,120 |
145,238 |
22,791 |
||||||||||||||||||
|
NetEase, Inc.’s shareholders’ fairness |
82,126,798 |
95,328,080 |
14,959,056 |
||||||||||||||||||
|
Noncontrolling pursuits |
871,006 |
3,950,558 |
619,929 |
||||||||||||||||||
|
Whole shareholders’ fairness |
82,997,804 |
99,278,638 |
15,578,985 |
||||||||||||||||||
|
Whole liabilities, redeemable noncontrolling |
141,874,582 |
153,643,924 |
24,110,084 |
||||||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
|||||||||||||||||||||
|
NETEASE, INC. |
||||||||||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||||||||||
|
(in hundreds, besides per share knowledge or per ADS knowledge) |
||||||||||||||||||||||||||
|
 Three Months Ended |
Yr Ended |
|||||||||||||||||||||||||
|
 December 31, |
 September 30,  |
 December 31,  |
 December 31,  |
 December 31,  |
 December 31,  |
 December 31,  |
||||||||||||||||||||
|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||||||||||||||||
|
 RMB |
 RMB |
 RMB |
 USD (Word 1) |
RMB |
RMB |
USD (Word 1) |
||||||||||||||||||||
|
Internet revenues |
19,761,738 |
22,190,749 |
24,373,565 |
3,824,744 |
73,667,133 |
87,606,026 |
13,747,297 |
|||||||||||||||||||
|
Price of revenues |
(9,833,976) |
(10,379,981) |
(11,455,785) |
(1,797,662) |
(34,683,731) |
(40,635,225) |
(6,376,553) |
|||||||||||||||||||
|
Gross revenue |
9,927,762 |
11,810,768 |
12,917,780 |
2,027,082 |
38,983,402 |
46,970,801 |
7,370,744 |
|||||||||||||||||||
|
Working bills: |
||||||||||||||||||||||||||
|
Promoting and advertising and marketing bills |
(3,076,499) |
(3,134,030) |
(3,300,032) |
(517,847) |
(10,703,788) |
(12,214,191) |
(1,916,673) |
|||||||||||||||||||
|
Basic and administrative bills |
(809,956) |
(1,140,296) |
(1,161,876) |
(182,324) |
(3,371,827) |
(4,263,549) |
(669,044) |
|||||||||||||||||||
|
Analysis and improvement bills |
(3,029,376) |
(3,761,239) |
(3,847,704) |
(603,789) |
(10,369,382) |
(14,075,991) |
(2,208,830) |
|||||||||||||||||||
|
Whole working bills |
(6,915,831) |
(8,035,565) |
(8,309,612) |
(1,303,960) |
(24,444,997) |
(30,553,731) |
(4,794,547) |
|||||||||||||||||||
|
Working revenue |
3,011,931 |
3,775,203 |
4,608,168 |
723,122 |
14,538,405 |
16,417,070 |
2,576,197 |
|||||||||||||||||||
|
Different earnings/ (bills): |
||||||||||||||||||||||||||
|
Funding (loss)/ earnings, web |
(271,866) |
(264,611) |
1,627,642 |
255,413 |
1,610,045 |
2,947,721 |
462,562 |
|||||||||||||||||||
|
Curiosity earnings, web |
410,001 |
349,550 |
395,029 |
61,989 |
1,598,618 |
1,519,714 |
238,476 |
|||||||||||||||||||
|
Trade (losses)/ beneficial properties, web |
(1,801,891) |
153,310 |
(331,390) |
(52,003) |
(3,112,152) |
(490,481) |
(76,967) |
|||||||||||||||||||
|
Different, web |
139,321 |
117,636 |
297,244 |
46,644 |
737,168 |
710,435 |
111,482 |
|||||||||||||||||||
|
Revenue earlier than tax |
1,487,496 |
4,131,088 |
6,596,693 |
1,035,165 |
15,372,084 |
21,104,459 |
3,311,750 |
|||||||||||||||||||
|
Revenue tax |
(552,661) |
(807,648) |
(933,985) |
(146,563) |
(3,041,849) |
(4,128,269) |
(647,815) |
|||||||||||||||||||
|
Internet earnings |
934,835 |
3,323,440 |
5,662,708 |
888,602 |
12,330,235 |
16,976,190 |
2,663,935 |
|||||||||||||||||||
|
Accretion and deemed dividends in |
(131,604) |
(147,825) |
(99,914) |
(15,678) |
(787,029) |
(536,981) |
(84,265) |
|||||||||||||||||||
|
Internet loss attributable to noncontrolling |
172,471 |
6,167 |
131,360 |
20,613 |
519,548 |
417,633 |
65,536 |
|||||||||||||||||||
|
Internet earnings attributable to the |
975,702 |
3,181,782 |
5,694,154 |
893,537 |
12,062,754 |
16,856,842 |
2,645,206 |
|||||||||||||||||||
|
Internet earnings per share * |
||||||||||||||||||||||||||
|
Primary |
0.29 |
0.96 |
1.74 |
0.27 |
3.65 |
5.07 |
0.80 |
|||||||||||||||||||
|
Diluted |
0.29 |
0.95 |
1.71 |
0.27 |
3.60 |
5.01 |
0.79 |
|||||||||||||||||||
|
Internet earnings per ADS * |
||||||||||||||||||||||||||
|
Primary |
1.45 |
4.78 |
8.68 |
1.36 |
18.25 |
25.34 |
3.98 |
|||||||||||||||||||
|
Diluted |
1.43 |
4.73 |
8.57 |
1.34 |
18.01 |
25.03 |
3.93 |
|||||||||||||||||||
|
Weighted common variety of strange |
||||||||||||||||||||||||||
|
Primary |
3,362,793 |
3,325,892 |
3,281,172 |
3,281,172 |
3,305,448 |
3,325,864 |
3,325,864 |
|||||||||||||||||||
|
Diluted |
3,411,169 |
3,361,727 |
3,323,004 |
3,323,004 |
3,349,759 |
3,367,478 |
3,367,478 |
|||||||||||||||||||
|
*Â Every ADS represents 5 strange shares. |
||||||||||||||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||||||||||
|
NETEASE, INC. |
||||||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||||||||
|
(in hundreds) |
||||||||||||||||||||||
|
Three Months Ended |
Yr Ended |
|||||||||||||||||||||
|
 December 31, |
 September 30,  |
 December 31,  |
 December 31,  |
 December 31,  |
 December 31,  |
 December 31,  |
||||||||||||||||
|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||||||||||||
|
 RMB  |
 RMB  |
 RMB  |
 USD (Word 1) |
 RMB  |
 RMB  |
 USD (Word 1) |
||||||||||||||||
|
Money flows from working actions: |
||||||||||||||||||||||
|
    Internet earnings  |
934,835 |
3,323,440 |
5,662,708 |
888,602 |
12,330,235 |
16,976,190 |
2,663,935 |
|||||||||||||||
|
    Changes to reconcile web earnings to web money offered |
||||||||||||||||||||||
|
    Depreciation and amortization |
962,526 |
805,485 |
836,042 |
131,193 |
3,457,782 |
3,275,727 |
514,033 |
|||||||||||||||
|
    Honest worth adjustments of fairness safety investments  |
559,104 |
1,194,338 |
(984,901) |
(154,552) |
(720,565) |
(471,880) |
(74,048) |
|||||||||||||||
|
    Impairment losses of investments and different long-term property |
51,795 |
26,055 |
69,572 |
10,917 |
58,395 |
100,424 |
15,759 |
|||||||||||||||
|
    Honest worth adjustments of short-term investments |
(118,945) |
(184,564) |
(166,513) |
(26,129) |
(580,732) |
(639,757) |
(100,392) |
|||||||||||||||
|
    Share-based compensation price |
628,979 |
688,226 |
1,002,899 |
157,377 |
2,663,489 |
3,041,492 |
477,276 |
|||||||||||||||
|
    (Reversal of)/ allowance for anticipated credit score losses |
(5,888) |
212,010 |
12,932 |
2,029 |
40,600 |
265,930 |
41,730 |
|||||||||||||||
|
    Losses on disposal of property, tools and software program  |
2,730 |
4,008 |
48,779 |
7,654 |
6,482 |
54,052 |
8,482 |
|||||||||||||||
|
    Unrealized alternate losses/ (beneficial properties) |
1,796,532 |
(157,292) |
347,235 |
54,489 |
3,102,492 |
488,604 |
76,673 |
|||||||||||||||
|
    Losses/ (beneficial properties) on disposal of long-term investments, |
178 |
(1) |
(13,091) |
(2,054) |
(27,063) |
(186,920) |
(29,332) |
|||||||||||||||
|
    Deferred earnings taxes |
(74,041) |
307,994 |
(431,015) |
(67,636) |
88,179 |
407,948 |
64,016 |
|||||||||||||||
|
    Share of outcomes on fairness technique investees and revaluation |
(216,528) |
(730,363) |
(448,053) |
(70,309) |
(302,602) |
(1,573,068) |
(246,849) |
|||||||||||||||
|
    Adjustments in working property and liabilities:  |
||||||||||||||||||||||
|
        Accounts receivable |
355,495 |
(1,178,290) |
(97,064) |
(15,231) |
(530,413) |
(1,186,586) |
(186,201) |
|||||||||||||||
|
        Inventories |
(96,499) |
(154,072) |
73,588 |
11,548 |
29,699 |
(343,587) |
(53,916) |
|||||||||||||||
|
        Prepayments and different property |
791,254 |
(38,490) |
870,684 |
136,629 |
(13,554) |
640,349 |
100,485 |
|||||||||||||||
|
        Accounts payable |
136,213 |
172,696 |
(89,207) |
(13,999) |
(86,352) |
(155,262) |
(24,364) |
|||||||||||||||
|
        Wage and welfare payables |
1,382,442 |
(647,029) |
1,521,743 |
238,795 |
528,927 |
505,334 |
79,298 |
|||||||||||||||
|
        Taxes payable |
220,244 |
(434,893) |
528,725 |
82,968 |
1,126,648 |
255,060 |
40,024 |
|||||||||||||||
|
        Deferred income |
568,704 |
2,154,751 |
(1,162,982) |
(182,497) |
2,342,916 |
1,351,261 |
212,042 |
|||||||||||||||
|
        Accrued liabilities and different payables |
335,117 |
928,647 |
786,517 |
123,422 |
1,373,608 |
2,121,416 |
332,896 |
|||||||||||||||
|
    Internet money offered by working actions |
8,214,247 |
6,292,656 |
8,368,598 |
1,313,216 |
24,888,171 |
24,926,727 |
3,911,547 |
|||||||||||||||
|
Money flows from investing actions: |
||||||||||||||||||||||
|
    Buy of property, tools and software program |
(303,347) |
(407,688) |
(442,524) |
(69,442) |
(1,055,572) |
(1,601,830) |
(251,362) |
|||||||||||||||
|
    Proceeds from sale of property, tools and software program |
7,895 |
11,030 |
56,517 |
8,869 |
17,540 |
71,524 |
11,224 |
|||||||||||||||
|
    Buy of intangible property, content material and licensed |
(333,507) |
(218,168) |
(297,142) |
(46,628) |
(2,234,915) |
(1,508,179) |
(236,666) |
|||||||||||||||
|
    Internet change in short-term investments with phrases of three |
(2,257,404) |
167,978 |
(1,474,371) |
(231,361) |
(1,655,930) |
3,694,890 |
579,809 |
|||||||||||||||
|
    Buy of short-term investments with phrases over three |
(2,200,000) |
(630,000) |
(4,300,000) |
(674,764) |
(19,905,000) |
(15,285,000) |
(2,398,550) |
|||||||||||||||
|
    Proceeds from maturities of short-term investments with phrases |
3,597,659 |
6,251,750 |
3,313,543 |
519,967 |
24,126,210 |
13,235,845 |
2,076,993 |
|||||||||||||||
|
    Funding in long-term investments and acquisition of |
(1,034,392) |
(586,124) |
(2,020,029) |
(316,987) |
(2,407,692) |
(6,541,567) |
(1,026,515) |
|||||||||||||||
|
    Proceeds from disposal of long-term investments, |
93,926 |
33,731 |
616,542 |
96,749 |
722,076 |
1,115,457 |
175,039 |
|||||||||||||||
|
    Placement/rollover of matured time deposits |
(14,720,632) |
(11,723,614) |
(26,628,133) |
(4,178,535) |
(91,518,767) |
(81,298,080) |
(12,757,443) |
|||||||||||||||
|
    Proceeds from maturities of time deposits |
18,246,875 |
28,328,155 |
15,707,821 |
2,464,900 |
64,880,317 |
81,307,297 |
12,758,889 |
|||||||||||||||
|
    Change in different long-term property |
(52,092) |
(69,429) |
(99,692) |
(15,644) |
(160,674) |
(268,651) |
(42,157) |
|||||||||||||||
|
    Internet money offered by/(utilized in) investing actions |
1,044,981 |
21,157,621 |
(15,567,468) |
(2,442,876) |
(29,192,407) |
(7,078,294) |
(1,110,739) |
|||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||||||
|
NETEASE, INC. |
||||||||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) |
||||||||||||||||||||||||
|
(in hundreds) |
||||||||||||||||||||||||
|
Three Months Ended |
Yr Ended |
|||||||||||||||||||||||
|
 December 31, |
 September 30,  |
 December 31,  |
 December 31,  |
 December 31,  |
 December 31,  |
 December 31,  |
||||||||||||||||||
|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||||||||||||||
|
 RMB  |
 RMB  |
 RMB  |
 USD (Word 1) |
 RMB  |
 RMB  |
 USD (Word 1) |
||||||||||||||||||
|
Money flows from financing actions: |
||||||||||||||||||||||||
|
    Proceed of financial institution mortgage with phrases over three months |
607,043 |
612,885 |
2,277,171 |
357,338 |
1,136,495 |
4,447,586 |
697,923 |
|||||||||||||||||
|
    Cost of financial institution mortgage with phrases over three months |
(361,973) |
(235,284) |
(1,311,823) |
(205,854) |
(818,539) |
(2,297,135) |
(360,471) |
|||||||||||||||||
|
    Internet adjustments in financial institution loans with phrases of three months or much less       |
(2,152,677) |
(7,967,910) |
425,020 |
66,695 |
3,723,109 |
(442,207) |
(69,392) |
|||||||||||||||||
|
    (Paid for)/ web quantities obtained from NetEase’s issuance of |
(171,440) |
– |
– |
– |
21,911,815 |
(13,800) |
(2,165) |
|||||||||||||||||
|
    Capital contribution from/ (repurchase of) noncontrolling pursuits |
10,609 |
34,800 |
1,320,122 |
207,156 |
(268,343) |
2,870,147 |
450,389 |
|||||||||||||||||
|
    Money paid for repurchase of NetEase’s ADSs/ buy of |
(3,445,930) |
(6,310,841) |
(2,112,256) |
(331,459) |
(11,490,988) |
(12,910,533) |
(2,025,944) |
|||||||||||||||||
|
    Dividends paid to noncontrolling shareholders |
– |
– |
(731,250) |
(114,749) |
– |
(731,250) |
(114,749) |
|||||||||||||||||
|
    Dividends paid to NetEase’s shareholders |
(861,211) |
(1,028,116) |
(940,540) |
(147,591) |
(4,280,462) |
(3,508,377) |
(550,541) |
|||||||||||||||||
|
    Internet money (utilized in)/ offered by financing actions      |
(6,375,579) |
(14,894,466) |
(1,073,556) |
(168,464) |
9,913,087 |
(12,585,569) |
(1,974,950) |
|||||||||||||||||
|
 Impact of alternate fee adjustments on money, money equivalents |
||||||||||||||||||||||||
|
    and restricted money held in foreign currency |
(67,229) |
14,435 |
(80,670) |
(12,659) |
161,894 |
(55,354) |
(8,686) |
|||||||||||||||||
|
 Internet improve/ (lower) in money, money equivalents and restricted money                |
2,816,420 |
12,570,246 |
(8,353,096) |
(1,310,783) |
5,770,745 |
5,207,510 |
817,172 |
|||||||||||||||||
|
Money, money equivalents and restricted money, initially |
9,352,185 |
13,158,965 |
25,729,211 |
4,037,475 |
6,397,860 |
12,168,605 |
1,909,520 |
|||||||||||||||||
|
Money, money equivalents and restricted money, at finish of the interval |
12,168,605 |
25,729,211 |
17,376,115 |
2,726,692 |
12,168,605 |
17,376,115 |
2,726,692 |
|||||||||||||||||
|
Supplemental disclosures of money stream info: |
||||||||||||||||||||||||
|
    Money paid for earnings tax, web |
347,389 |
898,112 |
858,304 |
134,687 |
2,046,119 |
3,547,299 |
556,649 |
|||||||||||||||||
|
    Money paid for curiosity expense |
46,177 |
52,765 |
42,879 |
6,729 |
246,051 |
187,628 |
29,443 |
|||||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||||||||
|
NETEASE, INC. |
||||||||||||||||||||||||||
|
UNAUDITED SEGMENT INFORMATION |
||||||||||||||||||||||||||
|
(in hundreds, besides percentages) |
||||||||||||||||||||||||||
|
Three Months Ended |
Yr Ended |
|||||||||||||||||||||||||
|
 December 31, |
 September 30,  |
 December 31,  |
 December 31,  |
 December 31,  |
 December 31,  |
December 31, |
||||||||||||||||||||
|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||||||||||||||||
|
RMB |
RMB |
RMB |
USD (Word 1) |
RMB |
RMB |
USD (Word 1) |
||||||||||||||||||||
|
Internet revenues: |
||||||||||||||||||||||||||
|
On-line recreation companies |
13,400,182 |
15,899,070 |
17,397,517 |
2,730,050 |
54,608,717 |
62,806,453 |
9,855,703 |
|||||||||||||||||||
|
Youdao |
1,106,796 |
1,387,292 |
1,333,791 |
209,301 |
3,167,515 |
5,354,357 |
840,215 |
|||||||||||||||||||
|
Cloud Music |
1,524,509 |
1,924,683 |
1,889,265 |
296,467 |
4,895,731 |
6,997,622 |
1,098,080 |
|||||||||||||||||||
|
Progressive companies and others |
3,730,251 |
2,979,704 |
3,752,992 |
588,926 |
10,995,170 |
12,447,594 |
1,953,299 |
|||||||||||||||||||
|
Whole web revenues |
19,761,738 |
22,190,749 |
24,373,565 |
3,824,744 |
73,667,133 |
87,606,026 |
13,747,297 |
|||||||||||||||||||
|
Price of revenues: |
||||||||||||||||||||||||||
|
On-line recreation companies |
(4,942,484) |
(5,637,027) |
(6,239,410) |
(979,100) |
(19,847,846) |
(22,101,116) |
(3,468,147) |
|||||||||||||||||||
|
Youdao |
(581,327) |
(601,741) |
(657,329) |
(103,149) |
(1,713,229) |
(2,448,146) |
(384,168) |
|||||||||||||||||||
|
Cloud Music |
(1,632,497) |
(1,881,859) |
(1,812,036) |
(284,348) |
(5,491,066) |
(6,854,948) |
(1,075,691) |
|||||||||||||||||||
|
Progressive companies and others |
(2,677,668) |
(2,259,354) |
(2,747,010) |
(431,065) |
(7,631,590) |
(9,231,015) |
(1,448,547) |
|||||||||||||||||||
|
Whole price of revenues |
(9,833,976) |
(10,379,981) |
(11,455,785) |
(1,797,662) |
(34,683,731) |
(40,635,225) |
(6,376,553) |
|||||||||||||||||||
|
Gross revenue: |
||||||||||||||||||||||||||
|
On-line recreation companies |
8,457,698 |
10,262,043 |
11,158,107 |
1,750,950 |
34,760,871 |
40,705,337 |
6,387,556 |
|||||||||||||||||||
|
Youdao |
525,469 |
785,551 |
676,462 |
106,152 |
1,454,286 |
2,906,211 |
456,047 |
|||||||||||||||||||
|
Cloud Music |
(107,988) |
42,824 |
77,229 |
12,119 |
(595,335) |
142,674 |
22,389 |
|||||||||||||||||||
|
Progressive companies and others |
1,052,583 |
720,350 |
1,005,982 |
157,861 |
3,363,580 |
3,216,579 |
504,752 |
|||||||||||||||||||
|
Whole gross revenue |
9,927,762 |
11,810,768 |
12,917,780 |
2,027,082 |
38,983,402 |
46,970,801 |
7,370,744 |
|||||||||||||||||||
|
Gross revenue margin: |
||||||||||||||||||||||||||
|
On-line recreation companies |
63.1% |
64.5% |
64.1% |
64.1% |
63.7% |
64.8% |
64.8% |
|||||||||||||||||||
|
Youdao |
47.5% |
56.6% |
50.7% |
50.7% |
45.9% |
54.3% |
54.3% |
|||||||||||||||||||
|
Cloud Music |
(7.1%) |
2.2% |
4.1% |
4.1% |
(12.2%) |
2.0% |
2.0% |
|||||||||||||||||||
|
Progressive companies and others |
28.2% |
24.2% |
26.8% |
26.8% |
30.6% |
25.8% |
25.8% |
|||||||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||||||||||
NETEASE, INC.
Notes to Unaudited Monetary Data
Word 1: The conversion of Renminbi (RMB) into United States {dollars} (USD) is predicated on the midday shopping for fee of USD1.00 = RMB6.3726 on the final buying and selling day of December 2021 (December 30, 2021) as set forth within the H.10 statistical launch of the U.S. Federal Reserve Board. No illustration is made that the RMB quantities may have been, or might be, transformed into US$ at that fee on December 30, 2021, or at another sure date.
Word 2: Share-based compensation price reported within the Firm’s unaudited condensed consolidated statements of complete earnings is ready out as follows in RMB and USD (in hundreds):
|
Three Months Ended |
Yr Ended |
|||||||||||||||||
|
December 30, |
September 30, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
||||||||||||
|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||||||||
|
RMB |
RMB |
RMB |
USD (Word 1) |
RMB |
RMB |
USD (Word 1) |
||||||||||||
|
Share-based compensation price included in: |
||||||||||||||||||
|
Price of revenues |
181,871 |
180,669 |
267,424 |
41,965 |
794,855 |
833,389 |
130,777 |
|||||||||||
|
Working bills |
||||||||||||||||||
|
– Promoting and advertising and marketing bills |
24,892 |
29,289 |
38,657 |
6,066 |
102,300 |
118,611 |
18,613 |
|||||||||||
|
– Basic and administrative bills |
214,730 |
258,805 |
358,595 |
56,271 |
929,013 |
1,105,547 |
173,484 |
|||||||||||
|
– Analysis and improvement bills |
207,486 |
219,463 |
338,223 |
53,075 |
837,321 |
983,945 |
154,402 |
|||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||
Word 3: The unaudited monetary info disclosed on this press launch is preliminary. The audit of the monetary statements and associated notes to be included within the Firm’s annual report back to shareholders for the yr ended December 31, 2021 remains to be in progress. As well as, as a result of an audit of the Firm’s inside controls over monetary reporting in reference to part 404 of the Sarbanes-Oxley Act of 2002 has not but been accomplished, the Firm makes no illustration as to the effectiveness of these inside controls as of the top of fiscal yr 2021.Â
Changes to the monetary statements could also be recognized when the audit work is accomplished, which may end in vital variations between the Firm’s audited monetary statements and this preliminary unaudited monetary info.
Word 4: The monetary info ready and introduced on this announcement could be completely different from these printed and to be printed by NetEase’s listed subsidiaries to fulfill the disclosure necessities underneath U.S. GAAP or completely different accounting requirements requirement.
Word 5: The unaudited reconciliation on GAAP and non-GAAP outcomes is ready out as follows in RMB and USDÂ (in hundreds, besides per share knowledge or per ADS knowledge):
|
Three Months Ended |
Yr Ended |
||||||||||||||||||
|
 December 31, |
 September 30,  |
 December 31,  |
 December 31,  |
December 31, |
December 31, |
December 31, |
|||||||||||||
|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
|||||||||||||
|
RMB |
RMB |
RMB |
USD (Word 1) |
RMB |
RMB |
USD (Word 1) |
|||||||||||||
|
Internet earnings attributable to the Firm’s shareholders |
975,702 |
3,181,782 |
5,694,154 |
893,537 |
12,062,754 |
16,856,842 |
2,645,206 |
||||||||||||
|
Add: Share-based compensation |
622,185 |
675,999 |
901,421 |
141,453 |
2,643,287 |
2,905,065 |
455,868 |
||||||||||||
|
Non-GAAP web earnings attributable to the Firm’s |
1,597,887 |
3,857,781 |
6,595,575 |
1,034,990 |
14,706,041 |
19,761,907 |
3,101,074 |
||||||||||||
|
Non-GAAP web earnings per share * |
|||||||||||||||||||
|
Primary |
0.48 |
1.16 |
2.01 |
0.32 |
4.45 |
5.94 |
0.93 |
||||||||||||
|
Diluted |
0.47 |
1.15 |
1.98 |
0.31 |
4.39 |
5.87 |
0.92 |
||||||||||||
|
Non-GAAP web earnings per ADS * |
|||||||||||||||||||
|
Primary |
2.38 |
5.80 |
10.05 |
1.58 |
22.25 |
29.71 |
4.66 |
||||||||||||
|
Diluted |
2.34 |
5.74 |
9.92 |
1.56 |
21.95 |
29.34 |
4.60 |
||||||||||||
|
*Â Every ADS represents 5 strange shares. |
|||||||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
|||||||||||||||||||
Contact for Media and Buyers:
Margaret ShiÂ
Electronic mail: [email protected]
Tel: (+86) 571-8985-3378
Twitter: https://twitter.com/NetEase_Global
SOURCE NetEase, Inc.
